As financial institutions endure lagging loan demand, competitive pressures, interchange fee restructuring, and ubiquitous branding accepted as standard business practice, it begs the question: How does a financial institution reduce operating expenses, differentiate itself and grow a profitable branch network?
Video banking may be the magic answer. It allows for staff efficiency and a compelling point of differentiation based on a convenience strategy.
What Is Video Banking?
With a Video Banking System, tellers can conduct safe transactions and serve multiple branches from one location. The transactions are completed at the point of sale and use a Personal Teller Machine more commonly known as a PTM. The PTM is familiar to customers because it looks and operates like a full-service ATM – but for each FI branch, it does so much more.
Through the PTM technology, consumers are able to see and speak with real life tellers via a two-way video portal, view their transactions, and conduct more than 95% of all traditional teller transactions.
Using a Teller Prompter, the teller is able to look into the camera while speaking to the customer. This allows tellers to carry out the transaction while keeping the customer engaged. The Video Banking System allows tellers to be staffed in a safe and centralized video-based call center and provide personal transaction services to customers up to 24 hours a day, 7 days a week. Research by Brigham Young University’s Graduate School of Business shows that current video banking users have more than a 90% satisfaction and acceptance rate of this new technology.
Convenience Has Always Been King
Consumers have always wanted to bank on their terms. Unfortunately, due to staffing cost constraints FIs can’t keep branch doors open the necessary number of hours to handle today’s shopping patterns. A Video Banking system creates a solution in providing personal transaction services to customers up to 24 hours a day, 7 days a week, as it has for more than 3 years now in Upstate New York at Mid-Hudson Valley FCU.
Mid-Hudson Valley FCU Port Ewan Interior Lobby. The FI is open 24 Hours
a day, 365 days a year with live Video Banking Tellers.
Progressive financial institutions are using Video Banking technology to address under-performing branches but, more importantly, to create a meaningful point of differentiation in their individual marketplaces. Convenience is a compelling point of differentiation as 80% of all consumers select a FI within five miles of their home.
Bob Machaud stands in front of the world's first drive-up
PTM deployed at Mid-Hudson Valley FCU in Port Ewan, NY.
To heighten the convenience factor, Mid-Hudson Valley FCU has just installed the first drive-through PTM. According to Bob Michaud, Chief Marketing Officer of MHV, the new drive through takes the convenience marketing strategy to a new level. “We can now deploy drive-up only branches in underutilized parking lots to fill in our branch distribution service area,” Michaud said. “With a PTM you never have to lock the door. There are no ‘banker’s hours’ with this system.”
A Smarter Branch
When FIs combine PTMs with Smart Offices it creates the ultimate Smart Branch that is both convenient and profitable.That is exactly what Five County Federal Credit Union recently built in two Maine locations. Five County first introduced PTMs and one Smart Office in a Wal-Mart Branch with an on-site staff of just one person.
Five County Smart Branch in New Brunswick, ME incorporates Concierge with uGenius PTM and Smart Office Technology.
The person staffing the branch operates more as concierge and mentor. With the Video Banking technology, the credit union has been able to keep its new Wal-Mart Branch and New Brunswick Smart Branch open 8 a.m. to 8 p.m. Monday through Saturday and reduce staffing costs.
The trendsetter in this marketplace is uGenius Video Banking Software. uGenius has streamlined the banking experience by developing a software that financial institutions can use to lower costs and serve customers in a professional manner.
"Not only does video banking offer greater convenience to customers and increase service satisfaction, but it is also the future of banking services," said Larry Wilson, CEO of Coastal FCU, a pioneering advocate for Video Banking since 2002.
With a Smart Branch, customers are able to conduct business during extended business hours and gain more access to multiple, convenient branch locations.
Coastal Federal Credit Union has been able to expand its hours of service by 44% and reduce labor costs by approximately 40% by replacing 100% of their traditional tellers with PTMs.
"That is the magic of Video Banking," said Chuck Purvis, COO of Coastal Federal Credit Union.
For more information please visit www.ugenius.com or call 801-619-5200.